AER invites views on the timing of its review of transmission network ring-fencing

The Australian Energy Regulator (AER) intends to review ring-fencing arrangements for transmission network businesses and to update its Transmission Network Ring-fencing Guidelines.

Energy Networks Australia has requested that we delay the timing of this review given the many other regulatory changes and reviews currently underway that impact on the regulation of transmission networks. This includes the Australian Energy Market Commission's review of the Coordination of Generation and Transmission Investment and the Energy Security Board's work on actioning the Integrated System Plan

The AER had intended to complete this review by December 2019. If we decide to delay the timing of this review, we expect that we would review the Guideline during 2020.

Interested parties and stakeholders are encouraged to provide views to the AER on the impact of delaying this review. Submissions are due by Thursday 18 April 2019.

Background

Ring-fencing requires regulated network businesses to separate their regulated business activities, costs and revenues from other unregulated services. In doing so, ring-fencing aims to promote competition and consumer choice in contestable markets for electricity services, and it aims to ensure efficient costs in the delivery of regulated services by network businesses.

The Australian Energy Regulator (AER) intends to review ring-fencing arrangements for transmission network businesses and to update its Transmission Network Ring-fencing Guidelines.

Sector: 
Segment: 
Issued date: 
2 April 2019
AER reference: 
AC 38/19
Contact: 
General inquiries - Ring-fencing ringfencing@aer.gov.au